Falabella, South America’s leading department-store network, is boosting its digital footprint with plans to invest $1.6 billion in IT and logistics as well as to flesh out its recently acquired e-tailer Linio.
The move is part of a $4.2 billion investment plan for the 2019-22 period in which the multiformat retail and financing group will open 95 stores and five shopping malls.
The Santiago, Chile-based firm would not provide a breakdown of where and under what brands the new doors will open but a spokeswoman said “all formats” including Falabella department stores, shopping malls, Tottus supermarkets as well as Sodimac and Ikea outlets in Chile, Peru, Colombia and Argentina will be fleshed out.
In 2019, Falabella will inaugurate 23 stores and two shopping malls as well as roll out a new distribution center in Peru for its white labels.
Falabella snapped up Linio for $137 million last August to boost its online presence in Argentina, Peru, Chile and Mexico, Latin America’s second-largest fashion market where the firm does not have a department-store presence.
Since then, Falabella has rushed to integrate its catalogue products with Linio’s and expand its click and collect capabilities in stores and shopping malls including Mallplaza in Santiago.
Efforts have also gone into expanding mobile purchasing capabilities, introducing new apps that now reach 1.5 million customers, and toward boosting credit products including a “100 percent online” credit card for Falabella.com.
Falabella ended 2018 with 504 stores and 43 shopping malls.